KUALA LUMPUR (Aug 22): Palm kernel expeller manufacturer Muar Ban Lee Group Bhd (MBL) has emerged as the largest shareholder of SWS Capital Bhd after the purchase of 51.53 million shares, representing an 18.73% stake in the company.

SWS Capital is involved in the furniture and plastic ware business.

With MBL holding an 18.73% stake in SWS Capital, businessman Datuk Eddie Ong Choo Meng becomes the second largest shareholder in the group with a 13.07% stake.

A bourse filing on Tuesday (Aug 22) showed that MBL purchased 12 blocks of shares totalling 51.53 million in SWS Capital through the open market between July 18 and Aug 22. The total cost of these purchases amounted to RM17.78 million.

As at end-December, MBL had a total deposit, bank and cash balance of RM118.76 million.

MBL, which funded the investment using its own internally generated funds, said this strategic move is in line with its investment strategies to diversify its business into other segments, such as the plastic wares and furniture businesses owned by SWS Capital.

Last week, SWS Capital terminated the deal to buy two parcels of land from Hextar Technologies Solutions Bhd (HexTech) due to failure to obtain financing. The two parcels of land measuring a total of 235,213 sq ft are located in Pasir Gudang, Johor and Klang, Selangor.

The deal drew market attention due to Ong being the common shareholder of HexTech and SWS Capital. He owns a 54.77% stake in HexTech via Hextar Tech Sdn Bhd.

On Tuesday, shares of MBL closed flat at 46.5 sen, valuing it at RM114.38 million. SWS Capital rose 5.8% to 36.5 sen, giving it a market capitalisation of RM98.97 million.